ADNOC Signs Agreements with More than 60 Companies at Make it in the Emirates Forum in Abu Dhabi
New agreements bring ADNOC closer to its target to locally manufacture AED70 billion of industrial products in its supply chain
ADNOC accelerates AED70 billion target to 2027, from 2030
Of the agreements signed to date, AED20 billion ($5.45 billion) is dedicated to local fabrication yards
Local manufacturing of critical industrial products provides ADNOC greater flexibility to respond to market dynamics as it decarbonizes and invests in lower-carbon solutions
Abu Dhabi, UAE – May 31, 2023: ADNOC announced today at the Make it in the Emirates Forum in Abu Dhabi, new agreements with more than 60 UAE-based and international companies to locally manufacture critical non-oil products in its supply chain.
The new agreements bring ADNOC closer to its target to locally manufacture AED70 billion ($19 billion) worth of products in its procurement pipeline which was announced at the last Make it in the Emirates forum in June 2022. In addition, the agreements have enabled AED2.84 billion ($774 million) to flow back into the UAE economy through industrial investments by suppliers in expanding or establishing new facilities.
ADNOC also accelerated its AED70 billion target to 2027, ahead of the previous target of 2030. Since the launch of Make it in the Emirates, ADNOC has more than tripled its direct spend with local manufacturers.
ADNOC’s Make it in the Emirates agreements are estimated to contribute to 10% of the AED172 billion ($46.9 billion) target in the Abu Dhabi Industrial Strategy which will double the size of Abu Dhabi’s manufacturing sector. The agreements could also enable 21,500 jobs within the UAE by 2031.
Dr. Saleh Al Hashmi, ADNOC Director, Commercial and ICV Directorate, said: “ADNOC is a critical engine for the UAE’s industrial growth and we are strengthening this role by localizing our supply chain and creating long-term domestic manufacturing opportunities for the private sector from our procurement pipeline, and ensuring its business continuity as we decarbonize our operations and work towards a lower carbon future. The agreements we have signed with the private sector supports our ongoing decarbonization efforts and will drive more sustainable value for ADNOC as well as enhance the resilience of our supply chain and the UAE’s industrial base. We encourage local and international manufacturers to take advantage of the remaining domestic manufacturing opportunities ADNOC has created and join the UAE in our industrial growth journey.”
Domestic manufacturing of critical industrial products strengthens the resilience of ADNOC’s supply chain and provides greater flexibility to respond to market dynamics as the company decarbonizes its operations and invests in lower-carbon energy solutions. It also also supports the UAE Net Zero by 2050 Strategic Initiative as new investors are encouraged to adopt clean technologies while setting up in the UAE through incentives in ADNOC’s In-Coutnry Value Program.
Of the agreements signed to date, AED20 billion ($5.45 billion) is dedicated to local fabrication yards. These fabrication yards will create thousands of new job opportunities, drive gross domestic product (GDP) growth, and enhance the resilience of the local supply chain across multiple industrial sectors in the UAE.
The Make it in the Emirates Forum is hosted by the Ministry of Industry and Advanced Technology (MoIAT) in conjunction with the Abu Dhabi Department of Economic Development (ADDED) and ADNOC. The forum is bringing together some of largest industrial companies to explore local manufacturing and investment opportunities in the UAE.
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